Climate leader UC Investments (University of California)1
provides early stage commitment to funds designed for investors
seeking to decarbonize their portfolios.
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today introduces two SPDR
MSCI Climate Paris Aligned ETFs designed to help investors meet
their climate objectives.
The funds, SPDR® MSCI USA Climate Paris Aligned ETF (NZUS) and
SPDR® MSCI ACWI Climate Paris Aligned ETF (NZAC),2 track the MSCI
USA Climate Paris Aligned and MSCI ACWI Climate Paris Aligned
Indexes and are geared toward the growing number of investors
interested in addressing climate change in their portfolios, both
to mitigate climate risk and to invest in climate solutions.
As one of the largest research universities in the world, the
University of California has been on the forefront of finding
solutions to climate change and is on track to becoming carbon
neutral by 2025. The university’s investment arm, UC Investments,
began shedding its fossil fuel holdings in 20153 and now its $168
billion portfolio4 is virtually fossil free.
“Climate change almost certainly will drive significant
structural shifts in the global economy, poses new risks to and
opportunities for long-term investments, and potentially creates
risks to the financial system” said Ron O’Hanley, Chairman &
Chief Executive Officer of State Street Corporation. “Our primary
focus is on long-term value creation for investors. We apply the
insights we gain from working with global institutional investors
to our own ESG priorities as a company.”
As previously announced, several fund changes were implemented
to the SPDR MSCI ACWI Low Carbon Target ETF (LOWC). The fund’s name
and ticker changed to the SPDR MSCI ACWI Climate Paris Aligned ETF
(NZAC) and its benchmark became the MSCI ACWI Climate Paris Aligned
Index. The fund also underwent a 4:1 stock split and the total
expense ratio has been reduced from 20 basis points to 12 basis
points.5
The Climate Paris Aligned ETFs are core equity exposures that
may help investors implement net-zero strategies6 and address
climate change in a holistic manner. The funds track the MSCI USA
Climate Paris Aligned and MSCI ACWI Climate Paris Aligned Indexes
which are designed to support investors seeking to reduce their
exposure to transition and physical climate risks and who wish to
pursue opportunities arising from the transition to a lower-carbon
economy while aligning with the Paris Agreement requirements.
“Our sustainability framework encompasses the foundational
values and principles that guide our investment decisions,” said
Jagdeep Singh Bachher, the University of California’s chief
investment officer. “As an early stage investor in these new ETFs,
we hope to open the door to others who, like us, believe that clean
energy will fuel the world’s future and wish to invest in a
decarbonized portfolio to improve the risk and return
characteristics of their holdings over longer periods of time. We
are excited that these funds are being brought to a broad investor
base. We believe that investing in climate solutions, not climate
problems, will provide superior risk-adjusted returns.”
“The introduction of NZUS and NZAC gives ESG investors more
choices on their journey to net zero,” O’Hanley added.
Learn more here about Decarbonizing Portfolios with SPDR MSCI
Climate Paris Aligned ETFs.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. SPDR ETFs are sponsored
by affiliates of State Street Global Advisors. The funds provide
investors with the flexibility to select investments that are
aligned to their investment strategy. For more information, visit
www.ssga.com/etfs.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the
world’s governments, institutions and financial advisors. With a
rigorous, risk-aware approach built on research, analysis and
market-tested experience, we build from a breadth of index and
active strategies to create cost-effective solutions. As stewards,
we help portfolio companies see that what is fair for people and
sustainable for the planet can deliver long-term performance. And,
as pioneers in index, ETF, and ESG investing, we are always
inventing new ways to invest. As a result, we have become the
world’s fourth-largest asset manager* with US $4.02 trillion† under
our care.
*Pensions & Investments Research Center, as of 12/31/20.
†This figure is presented as of March 31, 2022 and includes
approximately $73.35 billion USD of assets with respect to SPDR
products for which State Street Global Advisors Funds Distributors,
LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
1 Source: University of California as of June 22, 2022:
https://www.ucop.edu/investment-office/sustainable-investment/index.html.
2 Prior to 04/22/2022, the SPDR MSCI ACWI Climate Paris Aligned
ETF (NZAC) was known as the SPDR MSCI ACWI Low Carbon Target ETF
(LOWC).
3 Big wins for UC sustainability in 2015 (January 20, 2016).
4 Source: UC Investments as of March 31, 2022.
5 As of April 22, 2022.
6 Net zero strategies are investment strategies that seek
to align investments with a net-zero goal by a particular point in
time (e.g., 2050). Net zero means that the total greenhouse
gas (GHG) emissions being emitted should be lower than or equal to
the total GHG emissions being removed or absorbed (ie, no positive
emissions). On a net basis, no additional emissions should be
released into the Earth’s atmosphere.
Important Risk Disclosures
Investing involves risk of including the risk of loss of
principal.
The information provided does not constitute investment advice
and it should not be relied on as such. It should not be considered
a solicitation to buy or an offer to sell a security. It does not
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ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETFs net asset value. Brokerage commissions and ETF expenses
will reduce returns.
Equity securities may fluctuate in value in response to
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Foreign (non-U.S.) securities may be subject to greater
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Foreign securities may be subject to higher volatility than U.S.
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Companies with large market capitalizations go in and out
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value of the security may not rise as much as companies with
smaller market capitalizations.
Net zero means that the total greenhouse gas (GHG)
emissions being emitted should be lower than or equal to the total
GHG emissions being removed or absorbed (ie, no positive
emissions). On a net basis, no additional emissions should be
released into the Earth’s atmosphere.
Net zero strategies are investment strategies that seek
to align investments with a net-zero goal by a particular point in
time (e.g., 2050).
A non-diversified fund that focuses on a
relatively small number of issuers tend to be more volatile than
diversified funds and the market as a whole.
Passively managed funds invest by sampling the index,
holding a range of securities that, in the aggregate, approximates
the full Index in terms of key risk factors and other
characteristics. This may cause the fund to experience tracking
errors relative to performance of the index.
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investment process may cause it to make different investments than
funds that do not incorporate such considerations in their strategy
or investment processes. Under certain economic conditions, this
could cause a fund’s investment performance to be worse than funds
that do not incorporate such considerations. A fund’s incorporation
of ESG considerations may affect its exposure to certain sectors
and/or types of investments, and may adversely impact the fund’s
performance depending on whether such sectors or investments are in
or out of favor in the market.
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significant discounts in periods of market stress.
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Funds Management, Inc and any related funds.
Distributor: State Street Global Advisors Funds
Distributors, LLC, member FINRA, SIPC, an indirect wholly owned
subsidiary of State Street Corporation. References to State Street
may include State Street Corporation and its affiliates. Certain
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SPDR ETFs.
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prospectus which contains this and other information, call
1-866-787-2257 or visit www.ssga.com. Read it carefully.
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© 2022 State Street Corporation. All Rights Reserved.
4499644.1.1.AM.RTL Exp. Date: 04/30/2023
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Deborah Heindel +1 617.662.9927 dheindel@statestreet.com
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